Must Read Money Stories for Friday, May 27

by May 27, 2016


Good intentions.

In 2013, Bank of America Corp. was found liable for fraud and ordered to pay a $1.27 billion judgment to the government for its role in fueling the housing meltdown. ProPublica’s Jesse Eisinger reports on a landmark 2nd U.S. Circuit Court of Appeals decision that overturned that judgment on the basis that the bank had entered into mortgage contracts with good intentions. Experts say that will make it harder for federal prosecutors to try other cases stemming from the financial crisis —“throwing that area of the law into disarray.”

Burger blues.

Financial investigators raided the French headquarters of fast food giant McDonald’s on claims the chain deliberately manipulated its corporate accounts to reduce its French revenue and profit to reduce its tax burden. The New York Times reports the raid on McDonalds is the latest in President Francois Hollande’s crusade to make multinational companies pay their fair share of taxes. French officials also raided Google’s French headquarters on Tuesday.

New Opioid implant.

The U.S. Food and Drug Administration on Thursday approved the first drug implant to help treat heroin and opioid painkiller addictions, which have reached crisis levels. Bloomberg reports the implant, Probuphine, will continuously treat addicts with the drug buprenorphine for six months. Both buprenorphine and methadone help addicts deal with drug cravings by tricking the brain into thinking it is still getting opioids. Titan Pharmaceuticals Inc. and Braeburn Pharmaceuticals make the drug.

Alphabet’s Google win.

Alphabet Inc., the parent company of Google, scored a major win on Thursday in a copyright lawsuit against Oracle Corp. Reuters reports that a U.S. jury unanimously upheld Google’s claims that its use of Oracle’s Java development platform is protected under the fair-use provision of copyright law. Oracle previously sued Google for $9 billion, arguing that Google’s Android operating system violated its copyright on parts of Java, a key development platform. A 2012 trial ended in a deadlocked jury. Oracle said it will appeal the latest verdict.